Saving in South Africa: Why Financial Planning needs to Improve

Levels of personal indebtedness in South Africa are stretching the country to its limits. A World Bank report has declared South African consumers the ‘world’s biggest borrowers’, with statistics suggest that South African’s are struggling to manage their debt responsibly.

In the final quarter of 2016, there were 24.31 million credit-active consumers, of which, 9.76 million had impaired records. That means 40 percent are paying more for credit than they need. The trouble is that the bigger car, bigger house lifestyle is still very much alive in South Africa, particularly among the middle classes, and this is threatening the financial stability of millions of consumers.

Not enough savers in South Africa

The only way to reduce this reliance on credit is to improve the understanding of the importance of saving. However, a recent poll has shown that the proportion of South African households that are saving for the future and engaging in long-term financial planning is actually falling. In fact, only a quarter of South African consumers admitted to having funds set aside for emergencies, while less than half have saved anything in the last 12 months.

Levels of saving are particularly low among the younger generation, with millennials (those aged between 25 and 35) at risk of making worse mistakes than their parents when it comes to planning for the future. A survey of the saving habits of young South Africans found that only 35 percent of millennials are currently investing for the long-term. With only 6 percent of South Africans currently able to retire comfortably, it seems the attitudes of younger people have not changed, with most preferring to take home a bigger salary than make a higher contribution into their savings or retirement funds.

Making little changes every day

The important message is that wholesale changes do not need to be made to start planning for the future. With taxation and inflation on the rise in recent years, consumers need to make day-to-day adjustments to make their after-tax income go further.

The personal loans provider Wonga recently put together a list of simple financial changes consumers can make to help kick-start the savings process. However, there are also plenty of reputable and importantly, free sources of advice out there that can lead to improvements.

It’s not just down to low salaries

Low salaries and the high cost of living is often the reason cited by many South … Read More

Trading With Foreign Exchange

The times of technology have changed every aspect of our lives, communities and economy. Foreign exchange trading has been changed because of modern technology. At one time in history, this type of trading involved crossing borders into other countries. This type of trading has grew in popularity by how easy traders can invest in foreign exchanges. Technology has made it to where today’s traders are trading with multiple currencies in multiple countries. Often times, this trading can be done from the convenience of one’s own home. Today, anyone, anywhere can be involved in foreign exchange trading.

This type of trading is easy to get into. There are online and even mobile platforms for traders to trade on. Despite the easy access to this type of trading, new traders are prone to many mistakes. Often times this failure dissuades traders from continuing and learning about foreign exchange trading. Forex trading was created for insiders; people who understand the dynamics of this type of trading. Many beginners start off optimistically believing they will not become apart of the masses of those who do not make their money back from foreign exchange trading. However, for rookies that continue to learn and grow with foreign exchange trading, the return can pay off.

Often times beginners fall into the pool of forex trading leverage. At first, forex trading leverage may appear as the best fit for newbies because of the fact an investor can trade with more money than what is in their account. Trading with leverage is something many brokers offer, and beginners jump at the opportunity. Results of returns can be extremely good. But just as good as the gain is, the risk involved can be just as extreme. Often times, this is when beginners begin to end their foreign exchange trading days.

For the remaining 4 percent of traders that stick with foreign exchange trading, there are a few things this small percentage does that helps keep them afloat in their investment. The key to succeeding with this type of trading is having a good grasp on one’s emotions. Forex trading leverage can become tempting. The trader’s emotions may urge him or her to invest more than what’s in the trader’s account with forex leverage. It is key to have a trading plan and make sure to log your progress. Before trading with real money, try to learn with the stimulated forex … Read More

How Industry Pushes Society Forward

The direct effect that technology and its influence has on society cannot be overstated. Technology means something different to each person who hears it. It could be that when you hear the term technology your mind focuses on things like rocket ships, flying cars, and jet planes. Other people will think about faster computers, smart tablets, or machines that have the ability to learn on their own and mimic human behavior. Other people focus on the science and research aspect of technology. They think about improved laboratory equipment and advances in technology that allow one to grow food in hostile places.

The way that society looks at the term technology can often determine where they put their time and their energy. For example, if people look at technology only as things associated with computers or electronic devices that make fast advancements or that change quickly, then they will not give a sufficient amount of attention to other things that, although forms of technology, are not defined by most in society as technology. These things that are essential to life and must constantly improve if life on this planet is going to get better.

This does not mean that one should minimize the importance of new smart tablets, smart phones, electronic methods of payment, or social networks. The truth is that these things are moving society in ways that were not thought possible just a few years ago. Thanks to these types of technologies, fortunes are being made around the globe. However, other aspects of technology need to be explored if society is going to continue to progress in the ways that many thought society would two or three decades ago.

For example, science fiction always projected the idea that by the mid-2,000’s mankind would have flying cars. Instead, mankind has many ways to share media and videos. The point is that while it is important to focus on the electronics in the computer related aspects of technology, physical, things like improving the quality of deaerator trays, automobile motors, or home construction, cannot be overlooked.… Read More

Guide to get Athlete Financially

It’s no secret that professional athletes get hefty paychecks. In fact, many athletes earn millions of dollars each year. Surprisingly, a number of them manage to lose all of the money within a few years after retirement. However, when a professional athlete retires, they’re not retiring in their late 50s or 60s. The average retirement age of a professional athlete ranges between 28 to 33. This means that an athlete needs to be financially secure because they have a long life ahead of them. There are four ways an athlete can go about continuing to sustain their financial security.

1. Start a business.

It’s a good idea to start a business. Even when a professional athlete retires, it’s never a good idea to sit down and be idle. When a person is in their 30s, they still have plenty of energy to run a thriving business and build it into a multi-million dollar enterprise. If there’s one way to effectively work on wealth management for professional athletes, entrepreneurship is an excellent option.

2. Invest in real estate, stock and mutual funds.

Purchasing real estate is great because investment properties can serve as rental properties and they can also be passed down. It’s also good to invest in the stock market. Many people get nervous at the thought of the stock market, but it’s truly not as volatile as people think. It’s just really important to focus on wise investments. When people make knowledgeable and well-researched decisions before investing, they have a better chance at success.

3. Get rid of debt and spend less than you earn.

It’s never a good idea to hold onto any debt. There’s really no reason for a wealthy millionaire to have debt in the first place. Not only is important to get rid of the debt, it’s also best to live way below one’s means. When a person lives below their means, they’re able to save a lot more than they spend. Budgeting isn’t optional. It’s essential. To maintain wealth way into an athlete’s older years, it’s best to make sure that wise spending is not only practiced, but enforced.… Read More